Letter to our co-investors 1Q20

Dear co-investor,

We finished what has been one of the most challenging quarters we have ever experienced, both professionally and, of course, personally. Therefore, I would like to start by thanking you for your great trust in our work and wishing you all the best in these tough times.

I would also like, if I may, to express my congratulations and gratitude to the rest of the members of the Horos team, for the great effort they are making, so that our service and work can continue to be carried out as normally as possible. You can count on our dedication and rigor to be the same as always.

This quarter has been characterised by a sharp market downturn, as a result of investors’ panic and increased demand for liquidity, in the face of economic uncertainty due to the coronavirus pandemic. Thus, Horos Value Iberia fell by -35.1% compared to -27.6% of its benchmark index. On the other hand, Horos Value Internacional was down by -30.2% compared to -19.6% of its benchmark index.

In this quarterly letter, I would like to try to do my part to explain the severity of the market crash. But, most importantly, in an exercise in transparency that goes beyond previous letters, I will devote the bulk of this letter to discussing, in great detail, the changes we have made to our portfolios in order to mitigate potential risks and increase their upside potential to all-time highs.

We are convinced that we have an outstanding investment opportunity ahead of us. We are also proud to be able to say that in March, one of the worst months for the stock market on record, we had net inflows from our co-investors.